Evolution, a leading gambling content provider, has revealed its financial results for the 2nd quarter of 2024. According to the report, the company’s turnover increased by 15.3% to € 508.4 million.
Key Excerpts from the Document
According to the supplier, the highest revenue figures were recorded in the European and Asian markets.
For Q2, the developer managed to gain:
- € 345.8 million in EBITDA (a 10.9% uplift);
- € 311 million in operating profits (10.5% rise).
Live casino games generated the majority of the enterprise’s earnings. The vertical’s turnover reached € 438.1 million, up 17.8% YoY. Such a significant growth spurt was due to the strengthening and continued expansion of Evolution’s position in Asian markets. The Eastern division’s revenue increased by 22% to € 200.7 million.
Amid the rapid development of the live niche, RNG-based offerings showed a modest uplift of 1.4%. In total, slots brought the provider € 70.3 million. The report says the games accounted for just 13.8% of quarterly revenue.
Recall that this division comprises content from the following brands:
Regarding H1 revenue, RNG titles also grew slightly to € 140.5 million. The vertical still cannot surpass the live niche’s results even though much investment was made into slots.
Evolution’s Position in Key Regulated Markets
The company’s overall performance by region decreased by 1% over the year. Nevertheless, the North American area’s annual growth rate was 8.5%. The enterprise’s work in this market brought in € 60.2 million. To solidify its footprint in the US, the supplier initiated the acquisition of Galaxy Gaming, a prominent table entertainment provider.
Several facts about the arrangement:
- The expected equity value of the purchase is $ 124 million if net debt is included.
- The partner brand creates dealer terminals, bonus systems and other solutions for ground casinos.
- The agreement promises to significantly strengthen Evolution’s portfolio and provide access to 28 states.
Revenue from Latin America in the 2nd quarter of 2024 was estimated at € 36.6 million. The company considers this region very promising and is collecting and preparing documents to enter the Brazilian market.
Headcount Growth and Margins
The corporation’s full-time personnel expanded by 3,500 people, a 21.2% uplift. As a result, the provider’s operating expenses increased by 23.6% to € 197 million.
The voluminous hiring of new employees had a negative impact on the EBITDA margin. The indicator decreased to 68%. Despite the drop, the company hopes to reach a 69−71% parameter for the entire year.
After the previous expansion period, the 2nd quarter of 2024 was a time of consolidation with lower margins due to the ramp-up of new resources. The organisation’s experts predict a smoother staff enlargement during the H2.
Plans and Prospects for the 2nd Half of 2024
Q2 financial results did not fully reflect the company’s operations. A series of improvements are expected towards the end of the year.
The developer's primary focus will be optimising the slot vertical, comprising an increase in RNG launches. Let us recall that the enterprise presented 26 new niche games during the 2nd quarter. Evolution’s CEO mentioned that about 100 releases are planned for 2024. One of the most anticipated upcoming titles in Q3 is Lightning Storm.
As for the live vertical, Colombian and Czech broadcasting studios will be up and running by the end of the year. The studio also plans to expand into newly regulated markets, like Brazil and the Philippines. In parallel, the brand has started € 400 million share buyback, aiming to increase its value for existing and potential investors.
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